Profit fall for Hong Kong and Shanghai Hotels

Hong Kong and Shanghai Hotels, operator of the Peninsula Hotel chain, said its net profit declined by 12.7 percent amid the weak performance of its Hong Kong hotel and renovation of its Beijing and Chicago hotels.
Revenue declined by two percent to HK$5.74 billion, with the hotel business earnings down by four percent.
The Peninsula Hong Kong, which contributes about 23.4 percent of the group’s business, posted revenue of HK$1.34 billion, down one percent year-on-year.
Average room rate decreased seven percentage points.
Hotel occupancy was down by two percentage points as the Hong Kong’s entire hotel business incurred a downturn in 2015.
“In the short term, we see some uncertainty in Hong Kong at the moment in terms of tourism, high-end residential and retail,” said group chief executive Clement Kwok.